Press Information Bureau

Government of India

Cabinet

13-December-2012 20:46 IST

The Union Cabinet today approved the following:

(i) Reserve Price for spectrum in 1800 MHz band for 4 service areas (Delhi, Mumbai, Karnataka and Rajasthan) where no bids were received during auctions held in November, 2012 and for spectrum in 900 MHz band in Metro service areas of Delhi, Mumbai and Kolkata.

(ii) Pricing of Spectrum for current spectrum holding in 900 MHz and 1800 MHz bands in 4 service areas where auction discovered price is not available.

As recommended by the Empowered Group of Ministers (EGoM), the Cabinet also approved the following:

(i) the reserve price for 1800 MHz band in the service areas of Delhi, Mumbai, Karnataka and Rajasthan be reduced by 30 percent from the previous reserve price as approved by the Cabinet in the meeting held on 3rd August, 2012;

(ii) the reserve price for 900 MHz spectrum in Delhi and Mumbai be twice such revised reserve price for the 1800 MHz band; and

(iii) the reserve price for 900 MHz spectrum in Kolkata be twice the price obtained for the 1800 MHz band for this service area in the auction held in November, 2012.

(iv) As regards payment for spectrum currently held in 1800 and 900 MHz bands by existing operators in 4 service areas (namely, Delhi, Mumbai, Karnataka and Rajasthan) where auction determined price is not available, it has been decided that such operators be charged at the revised reserve price, on the applicable quantum of spectrum, till such time as auction determined price becomes available, and that after the auction price becomes available, the earlier payment made on the basis of reserve price would be adjusted against the amount actually due.

The above decisions are expected to result in further efficient utilisation of the scarce natural resource of spectrum facilitating proliferation of telecom services in the country.

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SH/SKS

Reserve price adjustment for spectrum bands affects incumbent operator charges pending auction pricing adjustment framework. The Cabinet set revised reserve prices for specified 1800 MHz and 900 MHz service areas, reducing the 1800 MHz reserve by thirty percent and linking 900 MHz reserve prices to the revised 1800 MHz level or auction results. Incumbent operators in affected areas will be charged at the revised reserve price on their applicable spectrum quantum until auction-determined prices are available, and payments made on the reserve-price basis will be adjusted against amounts due once auction pricing is determined.